What is market-rate housing?

Market-rate housing refers to residences that are leased or sold at prices determined by the current market conditions. In contrast, subsidized or affordable housing has price restrictions.

This type of housing is crucial because it sets the standard for the broader real estate market. It influences the cost and availability of rental and for-sale units for middle and high-income earners. Unlike affordable housing, market-rate units do not receive government assistance, which can make them less accessible to low-income families.

As city populations grow, the demand for new housing developments often leads to the construction of market-rate units, impacting the overall landscape of urban housing.

These developments can affect housing costs for renters in nearby areas. They can either increase supply and stabilize prices or potentially drive up costs through gentrification.

Integrating affordable housing within market-rate developments is one strategy for addressing these challenges. It aims to balance community needs and economic growth.